The price of gold on Monday reached a new record, with an ounce hitting 3.405.19 dollars (close to 2.990 euros), as uncertainty over global trade causes a rise in “safe haven” assets.
After reaching the highest level of all time, the price of gold currently stands at around 3.404.40 dollars (around 2.996 euros).
An ounce of gold rose on Monday by more than 2.3 percent and set a new record after investors’ concerns grew over the further escalation of the trade conflict between the world’s two largest economies.
The tendency of central banks to lower interest rates has also spurred the rise of gold, as the European Central Bank last week cut rates by 25 basis points.
The rise in the price of gold intensified after the United States (U.S.) President Donald Trump on April 2nd announced “reciprocal” tariffs on more than 180 countries.
China was the first country to react to the U.S. tariff increases and responded just as quickly. As a result of the tariff showdown between the two countries, the U.S. raised tariffs on China to 145 percent, and China raised tariffs on the U.S. to 125 percent.
While the Washington administration delayed comprehensive tariffs imposed on other countries for 90 days, tariffs on China went into effect.
The U.S. government also banned the export of Nvidia’s H20 chips to China, and the White House announced on April 15th that China now faces tariffs of up to 245 percent due to its retaliatory actions.
Meanwhile, China stated on Monday that it firmly opposes any agreement between the U.S. and its trade partners at the expense of Chinese interests amid a series of tariffs.
If such a situation occurs, China will not accept it and will resolutely take appropriate countermeasures, said a spokesperson for the Ministry of Commerce in a statement.
The remarks came in response to reports that the U.S. is preparing to pressure other countries to limit trade ties with China in exchange for tariff exemptions.
